Ripple Expands Presence in the UAE Amid Price Volatility

This event marks a strategic expansion for Ripple in a major global payment hub. By Reece Merrick, updated at 2021-05-18 1:13:00

Despite such optimistic developments, XRP price has fallen further after rolling over from 2.650 to just above the key support level at 2.30.

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XRP price is now down nearly 6% for the day and trades below the $2.30 mark as the broader cryptocurrency market continues to come under bearish pressure.

The market in cryptocurrencies has been anything but calm, with Bitcoin price wildly fluctuating—displaying a rally that saw it temporarily rise well over $106,000 before pulling back.

That kind of volatility also led to over $670 million in liquidations in crypto derivatives markets across top tokens such as XRP in the last 24 hours.

XRP was trading at around $2.30, down 3.35% in the last 24 hours at press time. Source: Source: XRP Liquid Index (XRPLX) via Brave New Coin

The market is also reacting to macroeconomic issues such as Moody’s recent downgrade of the U.S. credit rating and persistent inflationary concerns. Both of which have contributed to a sense of uncertainty.

Rising 30-year U.S. treasury yields breaching the threshold of 5% marked another factor that heightened risk aversion.

Technical analysis suggests that the present support at XRP of approximately $2.29 is an important level to watch. If this support fails to hold, XRP can test lower levels of approximately $2.00 or even move towards April lows at approximately $1.80. But if traders manage to break through the Fibonacci level at $2.47 and clear the round psychological level at $2.65, this could open the door for a recovery towards $3.00 and beyond, with certain longer-term projections expecting XRP values at around $8 to $12.

In other relevant news, the Chicago Mercantile Exchange (CME) has officially launched XRP futures contracts on its Globex electronic trading platform. Having regulated XRP futures available represents a significant step toward broader institutional adoption.

Two contract sizes will be available: a standard contract for 50,000 XRP and a micro contract for 2,500 XRP. The futures will be cash-settled in dollars against the CME CF XRP-Dollar Reference Rate to provide transparency and liquidity.

“The launch of XRP futures is anticipated to increase liquidity and price discovery on XRP, mirroring the growth of institutional interest in diversified crypto assets,” explained Alex Ioannou of 99Bitcoins.

Finally, Judge Analisa Torres has denied Ripple’s motion to vacate the ban on institutional XRP sales and refused to reduce the $125 million penalty imposed on the company by the U.S. Securities and Exchange Commission (SEC). This action kills the hopes for an XRP ETF listing and assisted in driving the token’s price down recently.

Legal experts like John Deaton suggest that a breakthrough may depend on the SEC formally acknowledging that XRP is not a security, which could dramatically alter the regulatory landscape.

Eleanor Terrett, host of Crypto America, explained the judge’s position: “Judge Torres is playing hardball here. She’s not making it easy for the parties to simply walk away; instead, she’ll make them work for it. She’s outlined a clear path forward if the SEC and Ripple can present a compelling case.”

However, the judge's decision to strike down the ban on selling XRP to institutions is a setback for the crypto industry at large.

At press time, the legal battle continues, and its resolution will likely have a decisive impact on the long-term trajectory of XRP price and the broader crypto market landscape.